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Car Loan Balloon Payments

Learn about the benefits of having a balloon payment on your car loan and see whether it is best for your situation.<br><br>1800 Approved Finance Solutions<br>33 Ereton Dr.<br>Arundel, QLD 4214<br>1800277768<br>http://www.1800approved.com.au/

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Car Loan Balloon Payments

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  1. Balloon payments Car loan questions answered 1800 Approved Finance Solutions 33 Ereton Dr. Arundel, QLD 4214 1800277768 http://www.1800approved.com.au/

  2. Are you trying to buy a car and a little confused over this balloon payment thing? Balloon payment is also called residual value, residual payment, or simply RV. There are pros and cons to having one and the amount of balloon payment you pay at the end of the term affects your monthly repayments.

  3. For example: You borrow $80,000 over 5 years and chose to pay $16,000 (20%) Residual Value/Balloon Payment at the end of the loan term. Your monthly repayments will be lower than if you chose not to have a balloon payment but you will have to save up for the $16,000 that you owe at the end of the term. Balloon payments are optional except on leases.

  4. Benefits of balloon payments Cash flow management The lower monthly payments will help with your cash flow especially if you run a business.

  5. Benefits of balloon payments Potential Increase in Loan Amount With lower repayments, the balloon payment option may potentially increase the loan size to help you afford a car or item that was previously just out of reach.

  6. Benefits of balloon payments Upgrading Some people use the balloon amount to keep their repayments down on a vehicle they plan on trading in at the end of the term.

  7. Benefits of balloon payments Tax Deductions Because you are paying less off the principal of your loan with each repayment you do end up paying more interest, which may be advantageous if your vehicle is for business use.

  8. If it still sounds a little confusing, it is best to consult with a finance broker and determine what is best for you. Different situations require different solutions.

  9. 1800 Approved Finance Solutions 33 Ereton Dr., Arundel, QLD 4214 1800277768 http://www.1800approved.com.au/ Car Loans http://www.1800approved.com.au/car-loans/ Providing award winning financial solutions to Australians since 2008. We specialize in boat loans, car loans, truck loans, business loans, & other finance services.

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